TORONTO, ONTARIO, August 28, 2017 – Mangazeya Mining Ltd. (“Mangazeya” or the “Company”) (NEX: MGZ.H) announced the filing of its unaudited interim condensed financial statements (“Financial Statements”), management’s discussion and analysis – quarterly highlights (“QH”) for the second quarter and the six months ended June 30, 2017. All figures are quoted in Canadian dollars unless otherwise indicated.

Highlights for the 6 months and 2Q 2017 include1:

During H1 2017 Mangazeya increased by 3% production of gold from 8,110oz to 8,357oz comparing to H1 2016; the sale of gold decreased by 6% from 6,602oz in H1 2016 to 6,195oz in H1 2017. In Q2 2017 the production of gold was 6,758oz comparing to 6,260oz in the corresponding period of 2016, the sale of gold was 4,841oz comparing to 5,475oz in Q2 2016. All production came from Savkinskoye mine;

Revenues for the period made up $8,156k for Q2 2017 and $10,539k for H1 2017 compared to 8,773k for Q2 2016 and 10,799k for H1 2016. The average gold price in 2Q 2017 increased comparing with the average gold price for Q2 2016 from $1,602 to $1,708 per ounce or by 7%; from $1,607 in H1 2016 to $1,674 in H1 2017 per ounce or by 4% (from US$ 1,209 to USD $1,255 per ounce or 4%);

Total cash cost (TCC1 ) in H1 2017 increased by 42% compared to H1 2016 as a result of growth in depreciation and amortization expenses included into cost of sales and currency rate fluctuation. TCC in Q2 2017 increased by 51% compared to Q2 2016;

The company reached negative adjusted EBITDA1 for the H1 2017 in the amount of $1,319k comparing with positive adjusted EBITDA for the H1 2016 in the amount of $3,680k. The adjusted EBITDA1 in Q2 2017 in the amount of $995k comparing with Q2 2016 in the amount of $3,199k;

Cash flow used in operating activities before changes in working capital amounted to $1,320k for H1 2017 compared to cash flow received from operating activities of $4,483k in H1 2016;

Capital expenditures for H1 2017 amounted to $19,240k compared with $9,649k in H1 2016. The Company invested in PPE - $18,464k; in Mine properties – $170k; in Exploration and evaluation assets - $580k and IA - $26k. For the same period of 2016 the Company invested in PPE - $6,609k; in Mine properties - $971k; in Exploration and evaluation assets - $2,026k and IA - $43k.

1

Non-IFRS financial measures (average gold price, total cash cost per ounce of gold, adjusted EBITDA). See definition and reconciliation the MD&A – Quarterly Highlights for the three and the six months ended June 30, 2017. Non-IFRS performance measures provide additional information and should not be considered in isolation or a substitute for measure of performance prepared in accordance with IFRS.

Financial Results for the 6 months and 2Q 2017

The Company reported operating income of 253k in Q2 2017 compared to income of $2,856k in Q2 2016. The decrease was mainly the result of decrease in sales volume by 12% and increase of total cash cost by 51%. For H1 2017, the operating loss amounted to $2,136k compared to operating income of $3,257k in H1 2016. The operating loss was mainly the result of the decrease in sales volume by 6%, increase in total cash cost by 42% in 1H 2017.

Administrative expenses in H1 2017 increased by 193% to $3,806k from $1,298 in 1H 2016 (in Q2 2017 increased by 162% to $1,880k from $717 in Q2 2016) due to changes in agreements of services as a result of the active construction and exploration works in Nasedkino and Zolinsko-Arkiinskaya areas.

In Q2 2017, the Company incurred finance expenses of $274k compared to $553k in Q2 2016 (the finance expenses decreased to $490k for H1 2017 from $1,813k for H1 2016) due to conversion of loans to equity in March 2016.

Cash received from operating activity before changes in working capital in Q2 2017 was $993k as compared to $3,739k in Q2 2016. Cash outflow from investing activities in Q2 2017 was $3,780k as compared to outflow of $9,914k in Q2 2016. The outflow was due to reduction of capital expenditure in Q2 2017 compared to Q2 2016. Cash received from financing activities in Q2 2017 was $5,354k compared to cash received from financing activities of $11,694k in Q2 2016.

For the six months 2017 year, the cash used in operating activity before changes in working capital was $1,320k as compared to cash inflow of $4,483k for the H1 2016. The negative effect of net loss for H1 2017 resulted in the cash outflow from operating activities before changes working capital. The cash outflow from investing activities in the H1 2017 was $17,126k as compared to outflow of $4,707k in the H1 2016. The cash received from financing activities for the six months 2017 was $26,429k compared to the cash received from financing activities of $11,664k during the H1 2016.